IOSR Journal of Business and Management (IOSR-JBM)

e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 10, Issue 3 (May. - Jun. 2013), PP 80-86
www.iosrjournals.org

Effective Leadership-Employee Retention-Work Life Balance: A

Cyclical Continuum
*Mrs.Prerna Nair , Dr. (Mrs.) Sonali Malewar
Management Dept., MATS University, India
Management Dept., MATS University, India

Abstract: It is an interactive paper which has been made to explain the association between leadership and its
impact on employee’s work-life and employee retention. Both the expressions have gained a lot of magnitude in
these day’s Organizations. Leadership has been taken up as a foundation in the study as it builds up the essence
of our Organizations; Work-life balance has also been addressed as a basic issue for the employees as well the
employers. The study undertaken tries to explain in a theoretical and a very interactive way how effective
leadership can help balancing the work-life of employees and consecutively leads to help the Organization
identify its quality employees and tap their efficiencies for a long-term through employee retention.
Keywords: Leadership, Leadership Focus, Work-life Balance, Employee Retention, Leadership Continuum.

ROAD-MAP FOR THE DISCUSSION:

I. Introduction:
Bringing it all together:
―Leadership is a continuous process of influencing people’s behavior. A Leader breathes life into the
group and motivates it towards goals. The lukewarm desires for the achievement are transformed into a burring
Poisson for accomplishment.‖
-Terry
Rationale behind the Study:
Human in nature have various psychological aspects in his work-life. No two human beings can be
similar when they enact as boss in any Organization. Every individual forms his own carcass of business
strategy to work on. But do this dynamism in leading styles have a very positive impact on employees who are
vital resources of any Organizations?
The Mercer’s 2012 Attraction and Retention Survey states that more than 40% Organizations are expanding
their overall workforce in 2012, compared to just 27% in 2010.

Theoretical Framework:
―Leadership is the process of influencing and supporting others to work enthusiastically towards achieving the
objectives‖ – Barnard Keys and Thomas Case.
Leadership styles are the patterns of behavior which a leader adopts in influencing the behavior of his followers.
The styles are either based on behavioral approach or situational approach of Leadership.

Based on the Behavioral Approach:

1. Power Orientation
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 Effective Leadership-Employee Retention-Work Life Balance: A Cyclical Continuum

2. Leadership as a continuum
3. Employee-production Orientation.
4. Likert’s Management System
5. Managerial Grid.
6. Tri-Dimensional Grid.

Based on Situational Approach:

1. Fiedler’s Contingency Model
2. Hursey and Blankard’s Situational Model.
3. Path-goal Theory.

Based on the above mentioned approaches, the leaders follow these all styles of Leadership Styles:

LEADERSHIP STYLES AND THE LEADERSHIP FOCUS:

TRAITS THAT IDENTIFY LEADERSHIP FOCUS:

Trait: ―A characteristic feature or a quality distinguishing a particular person or thing‖.

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 Effective Leadership-Employee Retention-Work Life Balance: A Cyclical Continuum

Leadership Focus Major Traits

MANAGING THE SEA-SAW AT EQUIVALENCE:

―Work-life balance, in its broadest sense, is defines as a satisfactory level of involvement or ―fit‖ between the
multiple roles in a person’s life‖.

-Hudson, 2005.

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 Effective Leadership-Employee Retention-Work Life Balance: A Cyclical Continuum

In totality, there are six elements of work-life balance: Technology Management can be said as
―Using the technology for human advancements‖. An approach for transitioning oneself or your team is called
as Change Management. Directing oneself towards achievement of the desired objectives is known as Self
Management whereas improving the productivity is called as Time Management. Stress Management is
maintaining the balance between the work-life balance, fighting the work and issues of personal life. When we
work, we tent to see relaxation as an equally important issue therefore; Leisure Management can be understood
as realizing the importance of rest and relaxation in one’s life.

Employee Retention:
The employees work in a place where they work in unison to achieve a common goal and it is strongly
felt the need to retain the good employees. It is also said that the Organizations where the employees are not
serious about their work and where their interests are taken over the interest of their organizations, such
corporations are bound to sink.
Employee Retention is important because hiring is not an easy process; a lot of time is spent on hiring
the candidates and to get them ready to face the challenging tasks and also to get them adjusted in the corporate
culture. When the employees leave the Organizations, they are most likely to join the competitors; the more an
employee works in the organization, more readily he will accommodate in the Organizational Culture.
Lucrative salary, comfortable timings, growth prospects are some of the factors which prompt an employee to
lookup for a change. The main purpose of retention is to prevent the loss of competent employees for the long
term (Chaminade, 2007). It is considered to be a voluntary move by an Organization to create an environment
which engages an employee for a long term. Turnover is not only destructive to an Organization, it is rather
costly affair.

Michel (2008), argued that shortage of skilled manpower, economic growth and employee turnover makes
employee retention more critical activity for the Organizational managers.
The Concept of Employee Retention:
Employee Retention emerged as a concept in 1970’s. Following are some of
the studies done in the context:

Considered to be a voluntary move by an Organization to engage employee Michel,2008

for a long time frame.

The main purpose of retention is to prevent the competent employees from leaving Chiboiwa, 2009
the Organization as this could have adverse effects on the productivity and service

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 Effective Leadership-Employee Retention-Work Life Balance: A Cyclical Continuum

delivery.
Leadership has always been in research focus as it is not only challenging but
also very dynamic aspect in an Organization:
Leadership is a process of encouraging and helping others to do something of their Okumbe ,1998
own violation, neither because it is required nor because of fear of consequences.
Management is about developing, planning and controlling of the Organizational Gwavuya , 2011
resources while leadership is about the aligning of people to the expected
outcomes of the vision. In order to lead, one must be able to manage and hence the
two are closely related.
Generally the followers will emulate the leader’s acts and behaviors, thus leading Mat, 2008
to achieving the final and desired goals.

Role of Leadership on Staff Retention:

The role of Leadership and a superior is crucial in staff retention, and argues that Bread well, 2007
employees leave managers and not the Organizations.
Leaders who understood the business, communicated the goals of an Chen, 2006; Payne,
Organization, and showed empathy towards employees were leaders who 2005; Rad &
promoted Job satisfaction. Yarmhammadian,
2006.
The reasons stated in the research conducted by Studer in United Kingdom for Studer, 2004
leaving the organization were an unsatisfactory connection with his or her
leader.
The quality of relationship an employee has with his or her immediate manager Ferreira, 2007, cited
elongates employee’s stay in an organization. in Micha el 2008
Incompetent Leadership results in poor employee performance, high stress, low Gwavuya, 2011
job commitment and turnover.
Leadership styles, especially lack of involvement in decision making and Muindi, 2011
inadequate communication were some of the issues that caused dissatisfaction.

Good Leadership Provides:

 Better vision & insight
 Offers a new learning each day
 Respects privacy at the workplace
 Follows participatory decision making process.
 Inculcates discipline
 Inspires, trusts, empower employees.
 Communicates the ground realities.
 Works towards providing others with job satisfaction.

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 Effective Leadership-Employee Retention-Work Life Balance: A Cyclical Continuum

II. Leadership Continuum:

The theory propounded by Tannenbaum and Schmidt (1958) depicts the idea of Leadership continuum and
stated variation of leadership practices along the continuum that move from autocracy towards democracy.
The continuum states the sequence of action performed with the degree of authority. Eventually if the
theory of Tannenbaum and Schmidt is related to X and Y of Mcgregor’s, the Superior-centered leadership
is towards X theory and subordinate centered leadership is towards Y theory. In both the theories, the
degree of freedom required and enjoyed by the employees is final outcome which leads to employee
retention.
Benefits so far experienced:
 Boss gets a range of options for involvement.
 States criteria for involvement and delegation.
 Focuses decision maker on relevant criteria.
 Emphasis employee development and empowerment.

Disadvantages:
 Involves only the initial step of assigning a task to someone, not the following processes that may
determine the effectiveness of the outcome.
 Assumes the manager has sufficient information to determine disposition to self or team.
 Assumes that no societal bonds or politics has impact on organization environment and hence its
neutral in nature.
 Simplifies the complicated decisions to simplest solution then reality is.
Source: Tannenbaum, R & Schmidt, W.H (1973, May/June). How to choose a Leadership Pattern. ―Harvard
Business Review‖

III. Final Remarks:

As has been discussed in the undertaken study, different leaders prefer individual patterns and styles of
leadership, the styles they choose can depend on the situations, even on the followers they have or can depend
upon on other variables such as position power etc. We can finally conclude the complete discussion by
summing the different aspects of how synchronized leadership can lead to better and suitable results and also
can help to identify good and talented employees. These identified employees can be retained and their
efficiencies can be tapped and utilized for Organizational initiatives.
Leader’s Orientation Suitable for Results in Benefits to Outcomes Final
Style Organizations Outcome
Autocratic Task Operational Higher High Profits Better wages &
Orientation Level Productivity Bonus.
EMPLOYEE RETENTION

Workers
Participative Balanced Top & Better Targets Harmonious
Approach Middle understanding Achievement Relationships &
(Employee Level amongst Job satisfaction.
+ Task Employees employees &
Orientation) Collectivism
followed by
task
Achievement.

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 Effective Leadership-Employee Retention-Work Life Balance: A Cyclical Continuum

Free-Rein Human Top & Freedom to High Autonomy &

Orientation Middle employees; achievements ( Employee
Level complete can be satisfaction
Employees flexibility to followed if the towards his
work. employees are work itself.
capable and
skilled in their
respective
tasks)
Directive Task Middle & Meeting Strict control; Higher
Leader Orientation Operational deadlines Target productivity (if
level according to achievements; taken
Employees the direction; Better supportively)
can monitoring of and better
sometimes be the employees. monetary
harmful to incentives.
Knowledge

EMPLOYEE RETENTION
workers.
Delegative Relationship Middle Confidence Organization Organizational
leader Oriented Level building can encash Citizenship; Job
Management among such satisfaction;
employees as leadership Intrapreneurship
the leader when the can be expected
takes a back employees are from such
seat while serious about employees.
decision their tasks &
making and they respect
supports his their leader.
team mates; When
treats employee base
employees is loyal then
with dignity. such results
can be
expected.

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